Is Colgate-Palmolive (CL) stock Halal?

Colgate-Palmolive is a global consumer products company whose primary purpose revolves around personal and home care. The company is recognized for its vast array of products in oral care, personal care, home care, and pet nutrition. Known for its flagship toothpaste and toothbrushes, Colgate-Palmolive also produces shampoos, soaps, and household cleaning products. Additionally, under its Hill's Pet Nutrition segment, it offers premium pet food and health supplies. Before any of that matters to a Muslim investor, one question comes first: is Colgate-Palmolive stock Halal?

Is Colgate-Palmolive Shariah compliant?

Yes. In the October 2026 screening Colgate-Palmolive (CL) passes AAOIFI Shariah Standard No. 21: the business activity screen and every financial ratio screen hold. Consumer staples companies like Colgate-Palmolive face the screening question at the shelf, not the balance sheet: does any revenue come from alcohol, tobacco or other impermissible lines? AAOIFI Shariah Standard No. 21 tolerates such income only below 5% of revenue, with the financial ratios checked behind it.

Does Colgate-Palmolive pass the business activity test?

Yes. In the October 2026 screening Colgate-Palmolive holds an overall PASS, which a stock only earns when its core business clears the activity screen. The watch item is the product mix: any alcohol, tobacco or similar lines count against the 5% ceiling.

Is Colgate-Palmolive's income Halal?

Yes, within AAOIFI's tolerance. Colgate-Palmolive's income from non-permissible sources stays below 5% of revenue in the October 2026 screening, and the small impure portion is handled through purification: the factor of 99.68% tells holders of CL what share of each dividend to keep and what remainder to donate to charity. On a dividend yield of around 2.46%, the purification amount is modest but real.

Does Colgate-Palmolive meet AAOIFI's debt and investment ratio requirements?

Yes. Both caps hold this month: interest bearing investments and interest bearing debt each stay below 30% of market capitalisation, measured against a market capitalisation of $68B (market data as of 1 October 2026). Because the caps move with the share price, our Shariah Supervisory Board has CL re-screened every month, and the result above always shows the latest verdict.

Why do other halal screeners show a different verdict for Colgate-Palmolive?

Screeners can disagree without either being wrong. AAOIFI Shariah Standard No. 21, which Tabadulat applies, measures interest bearing debt and investments against market capitalisation with a 30% ceiling. MSCI and FTSE measure them against total assets with a 33% ceiling, and S&P and Dow Jones Islamic use a multi year average of market capitalisation. Data dates differ too, because each provider reads filings and prices on its own schedule. The same company can therefore pass one standard and fail another in the same month. Tabadulat publishes one answer, the AAOIFI result as of October 2026, and re-screens it every month.

Tabadulat is an ADGM regulated brokerage whose license covers Shari'a Compliant Regulated Activities, as the FSRA permission names them. New to the terminology? Gharar and Maysir, Sukuk, Zakat and purification are all explained in plain English.

New to the screening method? Read What is Halal Investing? A Guide to Halal Stocks and Islamic Finance